IBM · 10-Q · 2026Q3 · Full report
Revenue Performance and Mix
INTERNATIONAL BUSINESS MACHINES CORP · 2026-10-22 · Importance 54 · Surprise 40 · No source text
Third-quarter 2026 revenue increased 4.7% year over year to $17.1 billion, while nine-month revenue increased 4.9% to $50.2 billion. Software was the fastest-growing major segment, with third-quarter revenue up 8.2% to $7.8 billion and nine-month revenue up 8.1% to $22.6 billion. Within third-quarter Software, Data revenue increased 19.1% to $1.7 billion, Hybrid Cloud increased 10.6% to $2.1 billion, and Transaction Processing increased 9.3% to $2.1 billion, while Automation declined 3.3% to $1.9 billion. Third-quarter Consulting revenue was essentially flat at $5.3 billion, while Infrastructure revenue increased 4.2% to $3.7 billion, including 31.3% growth in Distributed Infrastructure partly offset by a 19.6% IBM Z decline.
Key facts
- Total revenue for the nine months ended September 30, 2026 was $50,182 million, a 4.9% increase versus the prior-year period. source
- Software revenue for the nine months ended September 30, 2026 was $22,617 million, an 8.1% increase versus the prior-year period (7.0% adjusted for currency). source
- Consulting revenue for the nine months ended September 30, 2026 was $15,934 million, up 1.5% (1.2% adjusted for currency). source
- Total revenue for the three months ended September 30, 2026 was $17,103 million, a 4.7% increase versus the prior-year period. source
- Software revenue for the three months ended September 30, 2026 was $7,804 million, an 8.2% increase versus the prior-year period (8.7% adjusted for currency). source
- Infrastructure revenue for the three months ended September 30, 2026 was $3,707 million, up 4.2% (4.9% adjusted for currency). source
- Total revenue for the three months ended September 30, 2026: $17,103 million. source
- Total revenue for the nine months ended September 30, 2026: $50,182 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +13.6% | Total revenue for the nine months ended September 30, 2026 was $50,182 million, a 4.9% increase versus the prior-year period. |
| revenue | positive | realized | +9.9% | Software revenue for the nine months ended September 30, 2026 was $22,617 million, an 8.1% increase versus the prior-year period (7.0%… |
| revenue | positive | realized | +4.5% | Total revenue for the three months ended September 30, 2026 was $17,103 million, a 4.7% increase versus the prior-year period. |
| revenue | positive | realized | +3.5% | Software revenue for the three months ended September 30, 2026 was $7,804 million, an 8.2% increase versus the prior-year period (8.7%… |
| revenue | positive | realized | +1.4% | Consulting revenue for the nine months ended September 30, 2026 was $15,934 million, up 1.5% (1.2% adjusted for currency). |
| revenue | positive | realized | +0.9% | Infrastructure revenue for the three months ended September 30, 2026 was $3,707 million, up 4.2% (4.9% adjusted for currency). |
| revenue | positive | realized | — | Total revenue for the three months ended September 30, 2026: $17,103 million. |
| revenue | positive | realized | — | Total revenue for the nine months ended September 30, 2026: $50,182 million. |